Veolia Technologies for Mine Water Treatment CONFEDEM Meeting in Madrid October 10, 2013 Manuel Gómez – Director Desarrollo de Negocio, Zona Centro Veolia Water Solutions & Technologies

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100% subsidiary of Veolia Water Specialized in water and wastewater treatment for industries and municipalities • Technological solutions • Design-Build • Associated services

10,805 employees, over 60% researchers, engineers, project managers Over 350 proprietary technologies A customer-focused organization • Corporate Technical Research & Innovation • Technology Centers • Aquafab Standard Product Platform • Hydrex Platform - Specialized Water Treatment Products - Green chemistry

Sustainability concerns • Water & Carbon footprint assessment for water management

• Water Impact Index

Veolia Water Solutions & Technologies Global leader in water treatment

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Veolia Water Solutions & Technologies Iberica • Offices: Madrid, Barcelona, Guipúzcoa, Tenerife, Zaragoza

• Headcount: 280 employees

• Activities: Design & Build, solutions and operations

• Municipal and Industrial market, water & wastewater treatment

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Wide range of solutions

Technologies • Enhanced clarification & softening for higher TSS water: Multiflo™

• High speed clarification & softening: Actiflo ™

• Heavy metals removal: MetClean™

• Micro screen filtration: Hydrotech™

• Wide range of standard filtration solutions

• Membrane filtration (micro, ultra & nano-filtration, reverse osmosis)

• Ion exchange

• Moving bed biological reactor: AnoxKaldnes™

• Evaporation and crystallization: Evaled™ - HPD

• Sludge treatments

Services • Chemicals for water treatment: Hydrex™

• TechnoServices: spare parts and consumables, technical assistance and specialized advice

• Temporary mobile water solutions: Aquamove™

• Operation plant and outsourcing

• Financing capacity in some projects

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HPD Evaporation and Crystallization Evaporation solutions for all types of markets and industries : • Salt & caustic soda treatment, black liquor

concentration , brine…

• Potash and soda ash brine recovery

Crystallization solutions for all types of markets and industries : • Solutions for marketable table salt and brine plants

(NaCl, Na2SO4, KCl, …)

• ZLD solutions

Advantages for salt plant: water and salt recovery

Advantages for ZLD plants: highest water recovery and final solid product that can be manage with minimum environmental impact

Case Study: Fertilizer / Resource Recovery

Iperpotash, SA (ICL) Suria, Barcelona, Spain

Recovery from Potash Production • 750,000 tons/yr of chemical/food-grade sodium chloride • Up to 50,000 tons/yr of premium white potash

Process System Overview • (2) Single-stage HPD® salt crystallizers • (1) Multi-stage HPD-DTB potash crystallizer system • ACTIFLO® high-rate clarification system

Closed loop system • Captures leachate • Re-use of produced condensate

Design-Build Project

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Strong local presence for key players in the Mining Industry

Veolia Technologies for Mine Water Treatment

CONFEDEM Meeting in Madrid October 10, 2013 Robert L. Zick – Director, Mining Market Veolia Water Solutions & Technologies

1. Dense Sludge Technology 2. Zero Liquid Waste Technology 3. Sulphate Reduction Technology 4. Molycorp – Rare Earth Mine

Contents

Technology Development Process Descriptions and Benefits Selected Project Experience

1 Veolia’s DenseSludge Technology

DenseSludge The original process (HDS) was developed at Bethlehem Steel over 30 years ago. It was developed to reduce sludge volumes in metal bearing wastewaters including Acid Mine and Acid Rock Drainage (AMD and ARD). Veolia started using the process in 1992. First mining application – Consolidation Coal Company’s North Branch Mine in West Virginia in 1994

DenseSludge – Physical Descriptions What is the DenseSludge process? •Removal of Water Molecules from Sludge •Sludge from Conventional Precipitation Process is

Amorphous in Character •Viscosity and Density of Sludge Increases •Distinct Patterns of Crystals Appear •Water of hydration is removed from the molecules

Scanning Electron Micrographs (SEMs) of Conventional and DenseSludge Samples

Sulfuric Acid Pickling of Steel Pipe

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Conventional Sludge DenseSludge

Simplified Schematic of Single Stage Process

(Single Stage Neutralization)

S l u d g e C o n d i t i o n i n g

T a n k

N e u t r a l i z a t i o n T a n k C l a r i f i e r

A l k a l i S o u r c e U n t r e a t e d

W a s t e w a t e r

S l u d g e U n d e r f l o w

T r e a t e d E f f l u e n t

S l u d g e t o Mine ( C o n t i n u o u s )

( I n t e r m i t t e n t ) Disposal

Principles of the DenseSludge process:

Recycle sludge from the clarifier underflow • Typically between 5:1 and 20:1 recycle ratio is used (sludge

solids : precipitating solids) • Clarifier underflow sludge pumps have VFDs to change the

recycle ratio

Mix recycled sludge with the alkali (lime or caustic soda) Use this “Alkalized” sludge as the neutralizing agent. As sludge is recycled, particles grow; metals grow in layers like an onion and gypsum crystals increase in size. Control pH in precipitation reactor Remove or “blowdown” a portion of the sludge intermittently to maintain the desired density of underflow slurry

DenseSludge Results and Benefits The major benefits for DenseSludge versus Conventional:

1. >20% solids by weight in clarifier underflow 2. More efficient use of neutralizing agent (lime) 3. Decreases sludge blanket in clarifiers 4. Reduction of torque on clarifier drive 5. Reduction in footprint of clarifier (an increased rise-

rate through the clarifier is achieved using the DenseSludge process compared to a conventional precipitation process)

6. Reduced scaling from gypsum (calcium sulphate) formation

DenseSludge Mine Drainage Treatment Selected Projects Minera Chinalco Peru – Kingsmill Tunnel Discharge near Concentradora Mahr Tunnel in Department of Junin, Peru (Morococha Mining Region) Atlantic Richfield Company – Horseshoe Bend Seep in Butte, Montana at Berkeley Pit Site Morgantown Energy Producing Co. (MEPCO) – Steele Shaft Site near Garards Fort, Pennsylvania (PA) PA Bureau of Abandoned Mine Reclamation – Treatment of minepools for Lancashire Mine #15 and Hollywood Sites near Ebensburg, PA and near Hollywood, PA CONSOL Energy – Treatment of minepools at Flaggy Meadows, North Branch, and Blacksville #2 Mine Sites near Morgantown, Bayard, and Wana, West Virginia, respectively LTV Steel Company – Treatment of minepool for Clyde Mine near Clarksville, PA

Selected DenseSludge Project #1 – General Information Kingsmill Tunnel AMD Project, Morococha Mining Region, Peru Integrated with Chinalco’s Toromocho Copper Mine Project

Design/Construct Project Team – Veolia and Cosapi S.A., a Lima, Peru based Engineering and Construction Company Minera Chinalco Peru – Consultants: AMEC, design oversight and Grana y Montero, construction oversight Final Owner/Operator – Minera Chinalco Peru (the Chinese Aluminum Company) Design Flow Rate - Peak is 5,040 m3/hr, Average is 3,960 m3/hr Project Start-Up – 2010 Constructed Cost – $35 Million US

Kingsmill Tunnel DenseSludge AMD Treatment Facility – Moracocha Mining Region in Peru

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Selected HDS Project #2 – General Information Atlantic Richfield Company (Formerly Anaconda Copper) Horseshoe Bend WTP in Butte, Montana

Contract Basis for Veolia – Two phases of Design Services, Major Equipment Procurement, Construction Management, and Start-Up/Training Design Team – Veolia and Butte, MT Engineering Firms: MSE Technology Applications, and HKM Engineering WTP Operator – Montana Resources (a US copper producer) Design Flow Rate – 1,100 m3/hr Two-stage precipitation and clarification process Installed Cost – $23 Million US

HSB Water Treatment Facility Process Flow Diagram

Air Air

EqualizationBasin

HSB Water

Influent PumpStation

1st StagePH Adjust

1st StageClarifier

2nd StagePH Adjust

2nd StageClarifier

Effluent PumpStation

Alk. Tank Alk. Tank

LimeSystem

PolymerSystem

Sludge Blow-Downto Berkeley Pit

Discharge toSilver Bow Creek

EffluentLagoon

Atlantic Richfield’s Horseshoe Bend DenseSludge AMD Treatment Facility – Butte, Montana

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A regulatory driven approach to mine water treatment

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Zero Liquid Waste

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The Zero Liquid Waste (ZLW) Concept Many mine sites are required to remove sulphates and/or chlorides from mine water before discharging to a river or stream. Conventional treatment for pH, metals, and total suspended solids removal (TSS) before discharge to receiving streams does not remove sulphates or chlorides (salts) to levels required to meet new discharge standards. The Zero Liquid Waste concept was developed to meet new requirements for salt removal in addition to removal of metals and TSS.

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ZLW and ZLD Process Similarities

Process reused water Distillate

PRE- TREATMENT

MEMBRANE TREATMENT

EVAPORATOR & CRYSTALLIZER

SLUDGE DEWATERING

Feed

Salt cake to disposal or recovery

RO permeate Process reused water

PRE- TREATMENT

MEMBRANE TREATMENT

EVAPORATOR & CRYSTALLIZER

SLUDGE DEWATERING

Feed Clean Water Discharge

Distillate Salt cake to disposal or recovery

Crystals

Crystals

ZLW

ZLD

RO permeate

CONSOL ENERGY Mannington, West Virginia Water Treatment Facility, USA

Client description: • One of America’s largest

producers of natural gas and coal • Products help to provide over 70%

of the power supply in the US

Client Needs: • 3500 gpm Zero Liquid Waste mine

water treatment facility • Commercial operation began by

May 30, 2013

Veolia’s Solution: • DB: $95M – Pittsburgh office contract

award in April 2011 • Pittsburgh: Softening & RO Systems • Chicago: HPD® Evaporator/Crystallizer • O&M: $5 M/yr - Veolia Water O&M

contract award in May 2011, 10-year term with a 5-year renewal option

Technical highlight: • Lime Softening with Turbomix™

technology • Solids setting with conventional

clarifiers • 85% recovery through RO • Solid waste (softening sludge and salt

crystals) for disposal in on-site landfill

CONSOL Energy Process Flow Diagram

11/10/2013 Direction or Department name 28

Design Basis – CONSOL Mannington, WV Water Treatment Facility

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PARAMETERS

MINE WATER LEACHATE (PROJECTED)

REQUIRED EFFLUENT* MAX AVG

Design Flow, GPM 3500

5 (7,200 gpd)

pH, S.U. 5 – 10 7.1 6 – 9 Calcium, mg/l 300 268 39 100 Sodium, mg/l 3,000 2,855 106,724 Magnesium, mg/l 200 144 0.02 Potassium, mg/l 10 12 958 Alkalinity, mg/l as CaCO3 700 - 1,200 1,045 0

Chlorides, mg/l 1,500 1,356 148,219 < 218 Sulfates, mg/l 5,000 4,962 23,466 Iron, mg/l 150 114 0.3 Manganese, mg/l 2 1.7 0.01 Aluminum, mg/l 8 4 5.6 Barium, mg/l 5 0.1 0.01 Strontium, mg/l 10 8 2 TDS, mg/l 11,000 11,000 280,000 < 150 TSS, mg/l 150 104 100 *Additionally, effluent must comply with all applicable in-stream water quality criteria specified by the state of West Virginia

The ZLW concept uses Veolia technologies

HPD Evaporator

HPD Crystallizer

RO Trains

Raw Water Tank

Multimedia Filters Lime & Soda Ash Silos

Softening Systems with MULTIFLO Turbomix

1st Stage Clarifier

Sludge and Salt Dewatering Building

CONSOL Energy – Mannington, WV WT Facility Site Overview Looking Northeast

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CONSOL Energy – Mannington, WV WT Facility Closer View Looking East

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CONSOL Energy – Mannington, WV WT Facility View Looking South, Landfill Upper Right

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CONSOL Energy – Mannington, WV WT Facility View Facing West

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CONSOL Energy – Mannington, WV WT Facility View Facing Northwest

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A regulatory driven approach to minewater treatment

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Sulphate Treatment

A regulatory driven approach to mine water treatment

Two - Stage Sulphate Treatment Technology Reduces sulphate to < 50 mg/L by Two-Stage Process: 1st Stage: CaSO4 Desaturation

SO4 is reduced to <1,500 mg/L 2nd Stage: Advanced Chemical Precipitation (Ettringite) SO4 is reduced to < 50 mg/L Treated effluent can be reused.

Discharge Requirements – Typical Irrigation Standards

Sulfate 250 Cd 0.10 Cl 200 Cu 0.2 Fe 5 Co 0.05 Mn 0.2 Ni 0.20 Mo 0.01 V 0.10 Na 35% Zn 2.0 Al 5 Ca 60 As 0.10 All concentrations are in mg/L

Proposed Concept

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PRETREATMENT NANOFILTRATION

DESATURATION OF CaSO4

ADVANCED PRECIPITATION

PROCESS

POND WATER

NF PERMEATE

CaSO4 SLUDGE

NF REJECT

CaSO4

OPTION II

BACK TO POND

(OPTION - I)

TREATED WATER

SO4 < 50 mg/l

Pretreatment before Nanofiltration Pretreatment Includes Iron Coagulation, Multi-media filtration (MMF) and Green Sand filtration (if needed to reduce manganese) Veolia Multiflo Turbomix Technology for Pretreatment with MMF and Cartridge Filters •Mo reduced to < 0.05 mg/L •Fe reduced to < 0.3 mg/L •Mn reduced to <0.05 mg/L Silt Density Index after MMF): 3 – 4

Nanofiltration Reject Treatment Precipitate SO4 as CaSO4 Use lime or lime + CaCl2 as sources of Ca2+ Recycle Ratio = mass of solids (CaSO4) in the recycle line : mass of solids (CaSO4) formed from the NF reject Goal is to reduce SO4 to < 1,500 mg/L as SO4 (theoretical solubility limit)

Basic Sulphate Precipitation Process

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REJECT WITH HIGH

SULPHATES (SO4 3200 and Calcium 1020

mg/l)

Ca +2 SEED

CaSO4 SLUDGE FOR DISPOSAL

TREATED WATER SO4 < 1500 mg/l

VEOLIA WATER SOLID /LIQUID

SEPARATOR (MULTIFLO)

VEOLIA WATER (TURBOMIX)

REACTOR)

SLUDGE RECYCLE

SULFATE TREATMENT SCHEMATIC (Advanced Precipitation/Ettringite Process)

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MEMBRANE REJECT TURBOMIX

WITH MULTIFLO

TURBOMIX PH: 11.5 – 11.8 MULTIFLO

Al(OH)3 REGENRATION

TANK PH: 6.5 TO SLUDGE

DEWATERING UNIT

SATURATED SOLUTION OF CaSO4

ACID

TREATED WATER SO4 < 100 mg/l

LIME

SEED LIME OR

CaCl2

SO4 < 1800 mg/l

SLUDGE RECYCLE

SLUDGE RECYCLE

ALUMINUM

Conclusions NF with Proper Pretreatment is Capable of Reducing Sulphate to < target limit of 250 mg/L More than 98% Sulphate Rejection was Achieved 1st Stage Desaturation Process:

Sulphate from NF Reject reduced to <1,500 mg/L in presence of a seed material with Optimum Sludge Recirculation Ratio. Seed material is added one time during the start-up of crystallization process Sulphate Removal is a combination of Chemical Precipitation and Adsorption Process.

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Conclusions (contd.) CaSO4 Crystal Growth Kinetics depends on the Water Quality, type and dosage of Seed Material, and sludge recirculation ratio 2nd Stage Advanced/Ettringite Precipitation Process • Sulphate reduced from 1,500 to <50 mg/L • > 90% aluminum regeneration is expected •Bench-scale continuous testing has demonstrated

> 90% aluminum recovery

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A regulatory driven approach to minewater treatment

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Molycorp

Water treatment for rare earth minerals

Molycorp Mountain Pass Mine – Project Executed by Veolia’s Dayton, OH & Pittsburgh, PA Offices Client description: • The only rare earth oxide (REO) producer in

the Western hemisphere. • Own and operate the world’s largest, most

fully developed rare earth mine and oxide manufacturing facility outside of China.

Project description: • Client Needs:

The mine site will be integrated with a power plant, a chlor-alkali plant, a processing mill, and a water treatment plant. Treatment for waste streams recycle as feed streams to the chlor-alkali plant.

• Veolia’s Solution: Contract value: DB: $39M + Equipment: $10M

BU synergy: Dayton: Sales lead & equipment provider Pittsburgh: Process technology support & Turnkey Design Build of the water treatment plant

Technical highlight: • Flow rate: 1000 GPM (227m3/h) • Technologies:

OPUS and Multiflo/Turbomix

Reclaimed tailings storage facility

Existing production facilities New mill

site

New separation facility

Project Phoenix Fly-Over Video: http://www.molycorp.com/Resources/PhotoTours/ProjectPhoenixFlyOver.aspx

Questions? Thank You!

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